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~.ty of <br /> <br />iver <br /> <br />MEMORANDUM <br /> <br />Item #6.8. <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Mayor & City Council <br /> <br />Pat Klaers, City Administratpr <br />December 15, 1997 ~ <br />Consider 1998 Municipal Budget <br />Resolution and 1998 Tax Levy <br />Resolution <br /> <br />In September the City Council approved its proposed maximum budget and <br />tax levy for 1998. The net levy was proposed in the amount of $3,300,759. <br />This was a $375,450 increase over the adopted 1997 amount. Eighty-four <br />percent of the tax levy is dedicated toward general fund activities. Almost all <br />of the tax levy increase proposed for 1998 was for general fund purposes. <br />The September budget was proposed in the amount of $4,977,200. This was <br />a 9.73 percent or $441,350 increase over the adopted 1997 budget. <br /> <br />On December 1, 1997, the City Council held its Truth in Taxation public <br />hearing. No public comments were received at this public hearing. Notices <br />were sent out to all property owners in the county and a published notice was <br />put into the Elk River Star News. Figures in the marled notices and in the <br />newspaper notice were based on the September budget and levy proposal. <br />Based on these figures, the city tax rate was estimated to increase from <br />24.683 in 1997 to 26.613 in 1998. In spite of the city tax rate increase, the <br />total tax rate was estimated to decrease from 112.767 in 1997 to 111.798 in <br />1998. <br /> <br />At the December 1, 1997, Truth in Taxation meeting, the City Council <br />discussed a possible reduction in the September general fund tax amount. At <br />this meeting, the City Council noted that reducing the general fund tax <br />amount by $149,650 would reduce the proposed tax rate increase at the city <br />level from 8 percent to 3 percent. Discussion included on how much of a tax <br />rate reduction, if any, should take place and whether or not some or all of the <br />$149,650 should be designated for a specific project. All or part of this <br />amount can be designated for an activity and placed into a reserve if the city <br />is not going to spend these funds in 1998. <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />